McKinsey & Company has trimmed its global workforce by 10% over the course of the past 18 months. The consulting giant has downsized its workforce from over 45,000 at the end of 2023 to nearly 40,000 as of May 27, the Financial Times reported, citing sources. The development marked one of the largest firing moves by the global consulting major.
The decision to reduce the workforce reportedly comes at a time when the consulting giant is struggling with revenue growth. The troubles mounted after the company faced $1.6 billion in legal settlement in an opioid consulting probe.
Despite the reduction in the workforce, McKinsey is optimistic about its future and has reportedly planned to add new consultants in the coming year.
“Our firm continues to grow and we’re doing more impactful work, in more ways, than ever... [the company] will welcome thousands of new consultants in the coming year,” the company reportedly said.
Following a massive hiring drive, the consulting giant began a major restructuring plan in 2023 and eliminated over 1,400 back-office roles. The same year, it reportedly removed 400 specialists in data and software engineering. The company also tightened its performance review policy, which further triggered more exits.
Contrary to McKinsey, its rival Boston Consulting Group (BCG) posted a 10% increase in revenue to $13.5 billion in 2024, and its workforce surged to 33,000.
Paytm CEO on McKinsey Layoff
Paytm CEO and founder Vijay Shekhar Sharma, in a social media post on X, reacted to the McKinsey layoff and said ChatGPT is the new consultant on the block. Sharma blamed ChatGPT for thousands of jobs cut at the consulting giant.
“There is a new consultant in town. The answer is: ChatGPT,” said Sharma on X.
